A review blog has a favorable review of Health Insurance Innovations.
The article starts with detailing the favorable conditions in which Hiiquote is poised to thrive due to its focus on doing the best job it can for their customers. Customers looking for short term health insurance are limited to plans that are 3 months only. Policy makers who are working hard to do right by health insurance customers are going to extend this duration to 12 months. Legislation has been passed that ended the mandate to purchase health insurance or face a penalty. This means the short term health insurance market is going to be expanded to consumers by providing more health insurance options.
The review touches on when some difficult times happened for Hiiquote. The Department of Insurance in Arkansas sent a cease and desist letter that led to an investigation by insurance departments in 42 states that evaluated alleged the companies were being salacious towards customers by offering short term medical plans that were not what they were said to be by the agents.
Consumers need to make the distinction that HCC Life Insurance and Health Insurance Innovations are two completely different businesses.
HCC life used independent agents to sell products that were managed by Hiiquote’s cloud based billing technologies. Hiiquote does not approve or deny claims, while HCC does.
Out of the millions of customers, only hundreds had issues, and this was due to lack of research and patience in the short term medical plan purchasing process.
Executives from Health Insurance Innovations issued a statement in an SEC filing regarding the investigations into defrauding customers:
September 15, 2016, the Texas Department of Insurance (“TDI”) notified the Company that the TDI had initiated an enforcement action to investigate alleged violations of advertising rules and licensing violations. TDI requested certain information, records and explanations from the Company. The Company fully cooperated with the investigation. On February 8, 2018, the TDI notified the Company that it had closed the investigation effective February 2, 2018. The TDI verbally indicated that the inquiry has been coded as an “internal inquiry and review that resulted in a finding of ‘no violation’ with no disciplinary action taken.” The matter is considered resolved without penalty or fine from the TDI.
Fears of HIIQ’s demise have been far overblown, as a review of the balance sheet fundamentals remain sound with positive legislative movement on the horizon. The consensus amongst financial institutions is that investing in HIIQ right now has lots of value potential. Their already respectable growth rates will be expanded with impending legislative changes to upend Obamacare and the ACA by a possible factor of 10.